Vivendi and Vodafone announce today the signing of an agreement for Vivendi to acquire Vodafone’s 44% stake in SFR.
The amount of the transaction will be €7,950 M, split as follows:
€7,750 M, corresponding to a 6.2 multiple of SFR’s reported 2010 EBITDA (€3973 M);
A lump sum of €200 M, reflecting the generation of cash between January 1st, 2011 and July 1st, 2011.
Additionally, SFR and Vodafone will extend their commercial co-operation for a further three years.
Commenting on the agreement, Jean-Bernard Lévy, Chairman of the Management Board and Chief Executive Officer declared: “We are very pleased to reach our strategic objective to own 100% of SFR, which will help Vivendi to focus further on profitable growth and innovation. I am very confident that this will greatly benefit both the Group’s industrial development and our millions of subscribers and consumers globally. The transaction will create a significant increase in Vivendi’s adjusted net income, enabling us to raise the dividend to our shareholders.”
This agreement is subject to customary Competition Authority approval. Completion of the transaction is expected by end June, 2011.